Skydrive Pro Exceeds the List View Threshold

I have migrated Dropbox folders and files to Office 365/Skydrive Pro. I have moved the Dropbox files on employee A's "shared with everyone" folder. When employee B visits the Skydrive Pro web portal and clicks on shared with me, we see the following message "This view cannot be displayed because it exceeds the list view threshold (5000 items) enforced by the administrator"

Ok, but what does the error mean? When I visit employee A's Skydrive Shared with Everyone folder, there are only 55 folders. Those folder have subfolders but where does the 5000 come from? what is it referring to?

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